Mercedes-Benz moves forward with $70 million, 600-job expansion

Mercedes-Benz will hold a ceremonial groundbreaking Wednesday for the latest expansion at its Alabama auto plant: a 900,000-square-foot parts consolidation center.

The facility will create about 600 jobs, although plans are still being finalized and it's not clear how many of those people will be employed by Mercedes or its contractors and service providers. A combination of all three are expected to work from the facility, which will streamline logistics operations and support the receiving, handling and sequencing of parts.

Work has already begun on the facility, which is being built by Birmingham's B.L. Harbert International.

but new planning details pushed the employment projections up from 500 initially, said Felyicia Jerald, a spokeswoman for the plant. The project, which is in line for about $3.9 million in tax abatements, was prompted by growth at the plant.

The plant began producing the M-Class SUV in 1997, added the GL-Class SUV and R-Class crossover since then and is preparing to launch two new models: the C-Class sedan and a new SUV.

“With the addition of two new products and ongoing high demand for our current vehicles, our logistics operations are becoming increasingly more complex,” Markus Schaefer, head of Mercedes' Alabama operations, said in a prepared statement.

Gov. Robert Bentley and other state and local officials are expected to attend Wednesday's groundbreaking.